Macroeconomics (Book Only)
Macroeconomics (Book Only)
12th Edition
ISBN: 9781285738314
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 6, Problem 10WNG
To determine

The real income.

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Over a long period of time the CPI rose from 100 to 150. What does a CPI of 150 mean? If the price of imported vegetables rises, between the CPI and the GDP deflator, which one of the two will be affected more? Explain.
Use your CPI Chart to calculate the numbers 2-4. 2. If you made $38,000 in 1997, how much money would you have to make in 2006 to maintain your real income? Explain.
Suppose a person's nominal income is $74,280 in the current year, and the CPI for the current year is 120. The person's current real income, in base year dollars, is: $61,900. $64,000. $78,412. $89,136.
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